Jagatjit Industries shares jump 11% in two days; stock locked in upper circuit

Shares of Jagatjit Industries scaled their upper price band for the second straight session in Wednesday's trade. The stock is marching towards its 52-week high of Rs 163, it hit in July this year. The stock has been gaining momentum lately.

Shares of Jagatjit Industries hit an upper circuit of 5 per cent to Rs 158.75 at open on Wednesday, commanding a total market capitalisation (m-cap) of close to Rs 700 crore. The scrip had settled at Rs 151.20, up 5 per cent, in the previous trading session on Tuesday.

Last month, Jagatjit Industries had received a sanction of term loan of Rs 180 crore from Indian Renewable Energy Development Agency (IREDA). for the establishment of a 200 kilo liters per day (KLPD) grain-based ethanol distillery plant, situated across 25 sprawling acres in Hamira, Punjab.

The primary objective of this facility is the production of ethanol for blending with petroleum, thereby contributing to the biofuel sector. The company has already secured environmental clearance from the Ministry of Forest & Environment in FY 2022-2023 for the ethanol manufacturing facility. The total cost of the project is seen around Rs 210 crore over a period of five-year.

Shares of Jagatjit Industries have jumped about 30 per cent in the last one month, while the stock is up more than 60 per cent in the last six months. The stock has rallied about 80 per cent in the year 2023 so far, while it has delivered a return of more than 140 per cent in the last one-year period.

Founded in 1944, Jagatjit Industries Limited is a manufacturer of Indian made foreign liquor (IMFL) and country liquor (CL) in India. The company is listed on BSE. It manufactures an entire range of alcoholic beverages including whisky, vodka, rum, gin and brandy under the brands like Aristocrat Premium, AC Black, Royal Pride, King Henry among others.

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